From Front Office Sports <[email protected]>
Subject High Stakes for Netflix NFL Games
Date December 24, 2024 12:27 PM
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Morning Edition

December 24, 2024

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The NBA laid claim to Christmas for decades. The NFL has asserted itself on Dec. 25, as it does on any day it chooses. This year will also feature the first two games Netflix has broadcast. What is the streamer doing to prepare for a huge football audience—and can it avoid the buffering issues that plagued last month’s Mike Tyson–Jake Paul fight?

A note to FOS readers: We are off Wednesday, but check your inboxes Thursday as we go through the Christmas sports slate—particularly the Netflix NFL debut—and also examine what made Shohei Ohtani’s 2024 uniquely spectacular.

— David Rumsey [[link removed]], Colin Salao [[link removed]], and Eric Fisher [[link removed]]

A New Christmas Tradition: Netflix Set to Make NFL Debut [[link removed]]

Denny Medley-Imagn Images

The debut of live NFL games on Netflix is almost here, as the streamer is now on the clock for its groundbreaking Christmas Day doubleheader.

Chiefs-Steelers (1 p.m. ET) and Ravens-Texans (4:30 p.m. ET) will mark the first game broadcasts on yet another NFL media-rights partner, and a pair of ultra-rare Wednesday matchups.

TV ratings success on Christmas Day [[link removed]] in recent years pushed the NFL to think outside the box this spring as it crafted the 2024 regular-season schedule. Scheduling games on Wednesday wasn’t a guarantee, but once Netflix agreed to pay $150 million for two exclusive streams, the league went to work. Eventually, schedule-makers came up with what has now been dubbed the “NFL Holiday Remix,” as Week 16 included Texans-Chiefs and Steelers-Ravens on Saturday, allowing the four teams to play again just four days later on Christmas. They’ve all clinched playoff spots but are still fighting for seeding—and Patrick Mahomes remains in Kansas City’s startling lineup [[link removed]] despite lingering injuries.

NFL in the Queue

Netflix’s NFL deal is for three years [[link removed]], and in 2025, it will have some Christmas company from Amazon Prime Video, which will get a holiday game [[link removed]] as part of its Thursday Night Football streaming package.

Last season, CBS, Fox, and ABC had games as part of the NFL’s Christmas Day tripleheader, when the holiday fell on a Monday. Those games each averaged nearly 30 million viewers, so Netflix should be expecting big audiences.

After buffering issues tainted Netflix’s live stream of last month’s Jake Paul–Mike Tyson boxing match, sources told Front Office Sports that the NFL took notice of the problems, but ultimately it stood by its new streaming partner [[link removed]].

But unlike the Paul-Tyson fight, which reported viewership numbers that some have questioned, Netflix’s NFL games will be tracked by Nielsen [[link removed]], which is the industry standard for TV ratings.

Netflix’s Top Picks

Aside from the star power on the field Wednesday—two multiple-time MVP winners (Mahomes, Lamar Jackson) and the reigning Rookie of the Year (C.J. Stroud)—Netflix is pulling out all the stops it can off the field, too.

The biggest headliner is Beyoncé, who will perform the halftime show during the Ravens-Texans game. The artist headlined the Super Bowl XLVII halftime show in 2013 and also appeared in the Super Bowl 50 halftime show in 2016 alongside Coldplay. Mariah Carey will also have a short performance before the first game kicks off.

Since Netflix doesn’t have a week-to-week NFL package, it struck deals to use on-air talent from multiple other league media partners [[link removed]], including Greg Olsen (Fox), Ian Eagle (CBS), Mina Kimes (ESPN), Ian Rapaport (NFL Network), and Devin McCourty (NBC), in addition to current free agents like Drew Brees and Robert Griffin III.

NBA Trying to Keep Christmas Tradition Alive Amid NFL’s Presence [[link removed]]

Candice Ward-Imagn Images

The NFL’s decision to partner with Netflix is another step in its Christmas takeover. In an attempt to keep a stronghold on what has long been a basketball-exclusive holiday, the NBA and ESPN are sprinkling in some new tricks to old traditions.

All five NBA games will air on ABC—only the second time all games will be available over the air. The NBA first aired all five Christmas Day games on ABC in 2022, the same year the NFL aired its first Christmas Day tripleheader.

The games will be simulcast on ESPN, but will also stream on Disney+ and ESPN+ as Disney continues to leverage its sports and entertainment arms [[link removed]] to grow its streaming services.

The NBA is also airing its first Mickey Mouse–themed NBA altcast [[link removed]] during the Christmas opener between the Spurs and Knicks, which will air on ESPN2 and stream on ESPN+ and Disney+. The league has used NBA 2K and Marvel-themed alt-casts in the past to try to bring in younger audiences, and the NFL has done the same with SpongeBob– and Simpsons-themed alt-casts.

But the NBA’s Christmas strategy also involves targeting lapsed fans as it launched a revamped version of the famous “Jingle Hoops” commercial from 2013 with a new, animated version called “Jingle Hoops Regifted” [[link removed]] earlier this month.

Here is the NBA’s five-game slate (all times ET):

Noon: Spurs at Knicks 2:30 p.m.: Timberwolves at Mavericks 5 p.m.: 76ers at Celtics 8 p.m.: Lakers at Warriors 10:30 p.m.: Nuggets at Suns Streaming to the Rescue?

The NBA isn’t going to outdraw the NFL in viewership—whether football is on linear TV or streaming. But the NFL’s growing presence during Christmas Day has hurt the NBA, which averaged just 2.85 million viewers on Christmas [[link removed]] last year, the league’s lowest by far, while all three NFL games drew at least 27 million viewers [[link removed]].

Total NBA viewership is already down 18% this year across ESPN, TNT, and ABC, even after the Emirates NBA Cup final between the Bucks and Thunder drew 2.99 million viewers—the league’s second-most-watched game of the season, and a high number for two small-market teams. (Last year’s Lakers-Pacers final averaged 4.58 million viewers.)

The NBA has dealt with injuries to several top stars [[link removed]], which have negatively affected the viewership of nationally televised games. But perhaps the biggest reason for the league’s ratings dip has been the decline of cable, as total cable viewership is down 13% this year, according to Nielsen. Additional streaming options are coming during the NBA’s next media-rights deal [[link removed]] that kicks in next season: Amazon’s Prime Video and NBCUniversal’s Peacock.

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Three MLB Teams Paid 84% of Record $311M Luxury Taxes This Year [[link removed]]

Denis Poroy-Imagn Images

Major League Baseball’s latest luxury tax bills show a potentially concerning scenario of three big-market teams breaking further away from the rest of the league.

The league’s tax assessments for teams exceeding the $237 million payroll threshold in 2024 contained several records, as an unprecedented nine teams owe money and the total haul of $311 million set a new mark. But it was a very top-heavy list as the Dodgers, Mets, and Yankees combined for more than 84% of the total tax due.

The Dodgers, fresh off their first full-season championship since 1988 [[link removed]], led the way with a $103 million tax bill as a result of a payroll, by competitive balance tax calculations, of $353 million [[link removed]]. The Mets followed with a tax bill of $97.1 million, and the Yankees were assessed $62.5 million.

Each of those luxury tax payments must be made by Jan. 21. The Dodgers’ tax assessment set another league record.

Bigger Issues?

On the surface, MLB enjoys unrivaled competitive balance in major men’s North American pro sports, with no repeat World Series winners since 2000. The strengthening financial might of the three teams, however, suggests potential future issues, on and off the field. The trio formed part of MLB’s final four teams in the 2024 playoffs, and are also three of the top four in 2025 World Series betting odds [[link removed]].

Since the World Series, the Dodgers, Mets, and Yankees have each been further flexing their financial might, as the Dodgers used another salary deferral strategy to attract top free-agent pitcher Blake Snell [[link removed]]. The Mets recently signed star outfielder Juan Soto to a record-setting, $765 million contract [[link removed]], and the Yankees compensated for Soto’s departure by replacing much of his impact in the aggregate [[link removed]].

While numerous roster decisions for each team, and the rest of the league, still need to be made, early 2025 payroll figures point to a similar situation developing. The Dodgers again have the top payroll by current tax calculations [[link removed]] at $336.3 million, the Yankees rank No. 3, and the Mets are at No. 4, with only the Phillies sliding in between them at No. 2.

The 2025 luxury-tax threshold will begin at $241 million, already leaving those teams in line for another hefty bill in a year.

The luxury tax money is divided among several uses, including player benefits and retirement accounts, and a supplemental commissioner’s discretionary fund. That latter fund, in turn, was used in part to help aid teams that have seen their local media rights reduced by ongoing disruption in that industry.

The big-market behemoths, however, have not shown much concern about the impact of their activities on smaller-market clubs.

“I’m focused on the Mets and trying to win a World Series with the Mets,” said Mets president of baseball operations David Stearns, in response to a recent Front Office Sports question about lower-revenue clubs. “So I’m not particularly concerned about that.”

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Conversation Starters FOS chief financial officer Jason Hershman detailed how the Falcons lowered their concession prices at Mercedes-Benz Stadium on the latest episode of FOS Explains. Watch it here [[link removed]]. Tiger Woods told his son, Charlie, that he had to buy “everyone” a round after the 15-year-old scored a hole-in-one at the PNC Championship. Check it out [[link removed]]. LaLiga club Real Betis held its annual teddy bear toss Sunday. Fans showered the field with toys, which will be donated to disadvantaged children. Take a look [[link removed]]. Editors’ Picks Even Aaron Rodgers Jokes About Woody Johnson’s Teenage Sons Running Jets [[link removed]]by Margaret Fleming [[link removed]]“Being released by a teenager, that would also be a first.” ESPN-on-ESPN Crime or ‘Theater’? Stephen A. Smith and Kirk Herbstreit Snipe Over Ryan Day [[link removed]]by Margaret Fleming [[link removed]] and Michael McCarthy [[link removed]]The “First Take” and “GameDay” hosts have ripped each other recently. Unrivaled Adds Sabrina Ionescu As More Salary Details Emerge [[link removed]]by Margaret Fleming [[link removed]]The fledging league is paying its 36 players six-figure salaries. Question of the Day

Are you planning to watch the NFL games on Netflix on Dec. 25?

YES [[link removed]] NO [[link removed]]

Monday’s result: After watching the first round of the CFP, 67% of respondents think the committee made the right call choosing SMU over Alabama.

Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Events [[link removed]] Video [[link removed]] Podcast [[link removed]] Written by David Rumsey [[link removed]], Colin Salao [[link removed]], Eric Fisher [[link removed]] Edited by Matthew Tabeek [[link removed]], Or Moyal [[link removed]], Catherine Chen [[link removed]]

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